Chinese national jailed for Apple gift card draining scam in Pittsburgh
PITTSBURGH (KDKA) - A Chinese national has been jailed after pleading guilty to an Apple gift card draining scam at Walmart stores in the Pittsburgh area.
According to Pennsylvania Attorney General Michelle Henry, 20-year-old Zhixiang Chen pleaded guilty last week in Lawrence County Court to charges of corrupt organizations and organized retail crime.
He is now facing up to three years in jail, a $25,000 fine, and will forfeit $16,143 and the equipment used to commit the crimes. Chen is also facing separation proceedings.
"This defendant not only committed high-dollar thefts from retail stores, he also victimized consumers who bought the gift cards he had returned to store shelves after altering them for his own profit. After the gift cards were loaded with value by unsuspecting purchasers, the defendant would drain the balances leaving them with worthless cards," Attorney General Henry said. "This conviction and prison sentence shows our commitment to combating organized retail theft crimes that harm businesses and consumers."
Chen along with his associates are believed to have stolen hundreds of thousands of dollars through the scheme.
Surveillance footage from at least six Walmart locations showed Chen stealing the Apple gift cards. From there, he would alter the cards and redirect the funds to himself before returning them to store shelves. Customers who would then purchase the cards would have less than the value advertised.
In May 2024, he was caught trying to leave a Walmart with more than 100 gift cards hidden in his jacket. After that, police found nearly 4,000 more gift cards in his vehicle, estimating nearly $1 million. They also found cash and equipment used to alter the cards.
Frazer Township Police, Homeland Security Investigations-Pittsburgh assisted the Pennsylvania Attorney General's Office with this case.